Minnesota lawmakers are evaluating a bill that could lead to a statewide ban on cryptocurrency kiosks, following a surge in scams linked to these machines. Representative Erin Koegel introduced House File 3642 during a session of the Minnesota House Commerce Finance and Policy Committee, citing concerns from law enforcement about the use of crypto kiosks in fraudulent activities targeting older residents. The proposal comes after previous regulations, such as a 2024 law capping deposits and requiring refunds for verified fraud victims, failed to curb scam incidents. Law enforcement officials, including Sergeant Jake Lanz of the St. Cloud Police Department, have reported frequent scams involving Bitcoin ATMs. In response, companies like Bitcoin Depot have implemented mandatory ID checks to enhance compliance. With approximately 350 licensed crypto kiosks in Minnesota, the bill marks a shift from regulation to potential prohibition, as lawmakers debate whether a complete ban would better protect consumers than incremental reforms. The committee continues to review testimony and enforcement data as the industry adjusts to tighter controls.